A business has the following balances at the beginning of the year: Accounts receivable: 265000 Allowance for doubtful accounts: -39750 The following summary transactions occurred during the year. Sales for the year, 100% on credit: 510000 Cash collected on accounts receivable for the year: 503700 Write-offs of uncollectable accounts receivable: 31800 Received a cheque from a customer whose account was previously written off: 43180 Overall rate used to estimate the allowance for doubtful accounts at year end: 10% Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits. What is the balance in the bad debt expense account at year end? What is the balance in the allowance for doubtful accounts at year end? What is the balance in the accounts receivable account at year end
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
A business has the following balances at the beginning of the year:
Allowance for doubtful accounts: -39750
The following summary transactions occurred during the year.
Sales for the year, 100% on credit: 510000
Cash collected on accounts receivable for the year: 503700
Write-offs of uncollectable accounts receivable: 31800
Received a cheque from a customer whose account was previously written off: 43180
Overall rate used to estimate the allowance for doubtful accounts at year end: 10%
Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits.
What is the balance in the
What is the balance in the allowance for doubtful accounts at year end?
What is the balance in the accounts receivable account at year end?
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